FIRST SHIP LEASE TRUST UNAUDITED FINANCIAL STATEMENTS AND DISTRIBUTION ANNOUNCEMENT FOR THE SECOND QUARTER ENDED 30 JUNE 2011

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1 First Ship Lease Trust ( FSL Trust ) is a provider of leasing services on a bareboat charter basis to the international shipping industry. FSL Trust was constituted under a deed of trust dated 19 March 2007 entered with FSL Trust Management Pte. Ltd. as its trustee-manager and was listed on the Singapore Exchange Securities Trading Limited ( SGX ) on 27 March As at 30 June 2011, FSL Trust has a modern, high quality and diverse portfolio of 25 vessels consisting of seven containerships, eleven product tankers, three chemical tankers, two crude oil tankers and two dry bulk carriers. 23 vessels are employed on long-term bareboat leases and have a dollar-weighted average remaining lease period of approximately seven years (excluding extension periods and early buy-out options). The remaining 2 product tankers are currently trading in the product tanker spot market. The combined portfolio of vessels has a dollar-weighted average age of approximately six years. Summary of FSL Trust Consolidated Results 2Q Q 2010 Inc/(Dec) US$ 000 US$ 000 % Revenue 28,700 28, Loss for the quarter (491) (6,106) (92.0) Net cash generated from operations 13,486 17,256 (21.8) Net Distributable Amount 5,732 5, Amount to be distributed 5,732 5, Distribution Per Unit ( DPU ) (US Cents) For the period Annualised Page 1 of 14

2 1(a)(i) Consolidated Income Statements Note 2Q Q 2010 Inc/ (Dec) 1H H 2010 Inc/ (Dec) US$'000 US$'000 % US$'000 US$'000 % Revenue 28,700 28, ,552 52,960 (0.8) Depreciation expense on vessels (14,442) (15,066) (4.1) (28,738) (30,554) (5.9) Impairment loss on vessels - (7,865) N.M. - (7,865) N.M. Vessel operating and voyage expenses (4,267) (219) N.M. (8,410) (219) N.M. Management fees (867) (897) (3.3) (1,700) (1,876) (9.4) Trustee fees (41) (44) (6.8) (83) (89) (6.7) Other trust expenses (912) (3,861) (76.4) (1,647) (4,412) (62.7) Call on banker s guarantee (a) (2,500) - N.M. (2,500) - N.M. Finance income (84.2) (69.2) Finance expenses (b) (6,183) (6,817) (9.3) (12,009) (13,524) (11.2) Loss before income tax (489) (6,095) (92.0) (2,482) (5,407) (54.1) Income tax expense (c) (2) (11) (81.8) (4) (13) (69.2) Loss for the quarter/period (491) (6,106) (92.0) (2,486) (5,420) (54.1) Notes: (a) (b) (c) Provision for probable call on banker s guarantee (please refer to announcement titled Update on Daxin proceedings in Japan and PRC dated 18 July 2011). The finance expenses for 2Q 2011 include exchange gain of US$0.3 million arising from the partial repayment of inter-company US$-denominated loans previously extended to certain subsidiaries. This relates to tax expense on the taxable interest income on bank deposits. 1(a)(ii) Statements of Comprehensive Income 2Q Q H H 2010 US$'000 US$'000 US$'000 US$'000 Loss for the quarter/period (491) (6,106) (2,486) (5,420) Other comprehensive income: Translation differences relating to financial statements of foreign subsidiaries 543 (1,713) 1,745 (2,906) Exchange differences on monetary items forming part of net investment in foreign subsidiaries 476 (3,267) 1,659 (5,349) Effective portion of changes in fair value of cash flow hedges (3,788) (4,610) (5,231) (7,870) Net change in fair value of cash flow hedges transferred to income statement 3,809 3,634 7,476 7,416 Other comprehensive income, net of tax 1,040 (5,956) 5,649 (8,709) Total comprehensive income 549 (12,062) 3,163 (14,129) Page 2 of 14

3 1(a)(iii) Distribution Statements Note 2Q Q H H 2010 US$ 000 US$ 000 US$ 000 US$ 000 Loss for the quarter/period (491) (6,106) (2,486) (5,420) Add: Non-cash adjustments (a) 13,977 23,362 27,511 39,005 Net cash generated from operations 13,486 17,256 25,025 33,585 Less: Repayment of secured bank loans (8,000) (8,000) (16,000) (16,000) Income available for distribution 5,486 9,256 9,025 17,585 Add: Utilisation of cash retained from previous periods 246-2, Less: Cash retained in the current period - (3,568) - (3,568) Net distributable amount (b) 5,732 5,688 11,419 14,668 Amount available for distribution 5,732 5,688 11,419 14,668 Comprising:(i) Tax-exempt distribution 5,711 5,553 11,370 14,509 (ii) Tax-exempt (one-tier) distribution Amount to be distributed (c) 5,732 5,688 11,419 14,668 Units at the end of the period ( 000) 654, , , ,665 Distribution per unit (US Cents) (c) Notes: (a) (b) Non-cash adjustments include depreciation expenses, translation exchange differences and amortisation of certain debt upfront fees and initial direct costs. Initial direct costs are transaction expenses incurred in the origination of new leases. These costs are capitalised and amortised into earnings in proportion to the recognition of lease income. Total net cash generated for the quarter amounted to US$13.5 million. The net distributable amount of US$5.7 million is derived after deducting loan repayments totalling US$8.0 million and utilising cash retained from prior periods. (c) Distribution for 2Q 2011 i) Stub distribution for period from 1 April 2011 to 22 June 2011^(US$ 000) 5,208 Outstanding units as at 22 June 2011 ( 000) 598,665 Distribution per unit (US cents) 0.87 ii) Distribution for period from 23 June 2011 to 30 June 2011 (US$ 000) 524 Outstanding units as at 30 June 2011 ( 000) 654,665 Distribution per unit (US cents) 0.08 Amount to be distributed (US$ 000) 5,732 Total distribution per unit for 2Q 2011 (US cents) 0.95 ^ The stub distribution which was announced on 9 June 2011 will be paid on 21 July Page 3 of 14

4 1(b)(i) Statements of Financial Position 30 Jun Dec 2010 Trust Trust US$ 000 US$ 000 US$ 000 US$ 000 Non-current assets Vessels 843, ,023 - Subsidiaries - 679, ,523 Derivative assets , , , ,999 Current assets Inventories 1, Derivative assets Deposits, prepayments and other receivables 5,902 58,309 3,758 90,743 Cash and cash equivalents 21,925 18,379 55,846 51,790 29,361 76,688 60, ,721 Total assets 872, , , ,720 Equity attributable to unitholders of FSL Trust Units in issue 525, , , ,273 Reserves (181,245) (290,354) (167,825) (262,466) Total equity 344, , , ,807 Non-current liabilities Secured bank loans 241, , , ,409 Derivative liabilities 11,185 11,185 14,289 14, , , , ,698 Current liabilities Trade and other payables 9,309 3,240 6,204 3,227 Distribution payable 5,208 5, Lease income received in advance 1,746-2,682 - Derivative liabilities 12,943 12,943 12,748 12,748 Secured bank loan 246, ,640 25,240 25,240 Current tax payable , ,035 46,883 41,215 Total liabilities 528, , , ,913 Total equity and liabilities 872, , , ,720 Page 4 of 14

5 1(b)(ii) Aggregate Amount of s Borrowings and Debt Securities 30 Jun Dec 2010 US$ 000 US$ 000 Secured bank loans Amount repayable within one year 246,640 25,240 Amount repayable after one year 243, ,024 Less: Unamortised debt upfront fees (1,902) (2,615) 488, ,649 The Trustee-Manager has, on behalf of FSL Trust, put in place total revolving credit facilities of US$515 million ( combined facility ) of which the outstanding loan balance was US$490.3 million as at 30 June The combined facility comprises three tranches: Amount drawn as at 30 Jun 2011 (US$ million) Margin above US$ 3-month Libor (note 1) Tranche Facility amount (US$ million) Loan maturity A ^ 27 March % B ^ 2 April % C* April % * Commitment amount for this tranche was reduced by US$3.75 million every quarter from 20 September Note 1: Post the amendment period which ended on 30 June 2011, the margins for all 3 tranches have been reduced to 1.25% above US$ 3-month Libor for Tranche A and 1.45% above US$ 3-month Libor for Tranches B and C. ^ : US$25.6 million under Tranche A and US$20.4 million under Tranche B (totalling US$46.0 million drawn during the amendment period for the acquisition of the TORM vessels) attract a margin of 1.70% above US$ 3-month Libor till the respective maturities of the loans. The Trustee-Manager is in advanced discussions with the lending banks to refinance loans under the credit facility, of which Tranches B and C will mature in April The terms of the re-financing package are expected to be finalised in the near term. As a sign of support by the lenders, a total of US$46 million was drawn under the credit facility during the quarter to partially finance the acquisition of two Long Range II product tankers. The additional loans are drawn from Tranches A and B. The combined facility is secured on the following: (i) a first priority mortgage over the s vessels in the portfolio; (ii) a first priority assignment of the s rights, title, interest in the insurances to and for each vessel, including insurance for hull and machinery, protection and indemnity and war risks; and (iii) a first priority assignment of the s rights, title and interest in and to the bareboat charter agreement and the charter income of each vessel. FSL Trust has hedged its interest rate risk through a combination of interest rate swaps and/or natural hedges to fix the interest rates until the maturities of the facilities. For interest rate swaps, the all-in effective interest rates range from 4.74% per annum to 6.94% per annum. Page 5 of 14

6 1(c) Consolidated Cash Flow Statements 2Q Q H H 2010 Note US$ 000 US$ 000 US$ 000 US$ 000 Operating activities: Loss before income tax (489) (6,095) (2,482) (5,407) Adjustments for: Depreciation expense on vessels 14,442 15,066 28,738 30,554 Impairment loss on vessels - 7,865-7,865 Amortisation of debt upfront fees and initial direct costs Interest income (23) (146) (53) (172) Interest expense 5,977 6,110 11,917 12,206 Unrealised exchange differences (293) 394 (877) ,094 23,681 38,194 46,711 Changes in working capital: Deposits, prepayments and other receivables (2,981) (6,786) (2,156) (6,775) Inventories (17) (321) (796) (321) Trade and other payables 2,047 2,677 3,144 2,661 Lease income received in advance 1,193 (49) (936) (501) Cash generated from operations 20,336 19,202 37,450 41,775 Income taxes paid (8) - (8) - Cash flows from operating activities 20,328 19,202 37,442 41,775 Investing activities: Acquisition of vessels (93,220) - (93,220) - Interest received Costs incurred for dry-docking (5) (197) (18) (197) Cash flows from investing activities (93,196) (166) (93,173) (137) Financing activities: Net proceeds from issuance of units (a) 15,141-15,141 - Distribution to unitholders (5,687) (8,980) (11,375) (17,960) Repayment of secured bank loans (8,000) (8,000) (16,000) (16,000) Proceeds from borrowings 46,000-46,000 - Interest paid (5,880) (6,013) (11,956) (12,176) Cash flows from financing activities 41,574 (22,993) 21,810 (46,136) Net decrease in cash and cash equivalents (31,294) (3,957) (33,921) (4,498) Cash and cash equivalents at beginning of period 53,219 56,229 55,846 56,770 Cash and cash equivalents at end of period 21,925 52,272 21,925 52,272 Comprising:- Cash at Bank 19,125 30,142 19,125 30,142 Short-term deposits - 22,130-22,130 Short-term deposit (restricted) (b) 2,800-2,800-21,925 52,272 21,925 52,272 Notes: (a) (b) Pursuant to a private placement exercise conducted in June 2011, 56 million new units were allotted and issued on 23 June 2011 at S$0.35 per unit (6.4% discount to adjusted volume weighted average price). The total net proceeds from this equity issuance amounted to US$15.1 million (or S$18.7 million). This relates to a cash deposit provided as security for a banker s guarantee of US$2.8 million for the release of a vessel, FSL Hamburg. Page 6 of 14

7 1(d)(i) Statements of Changes in Unitholders Funds Note Units in Issue Hedging Reserve Foreign Currency Translation Reserve Accumulated Profit/(Losses) Total Equity US$ 000 US$ 000 US$ 000 US$ 000 US$ At 1 April ,273 (23,773) 1,442 (148,568) 339,374 Total comprehensive income for the quarter ,019 (491) 549 Contribution by and distribution to unitholders: Units issued pursuant to equity placement (a) 15, ,141 Distribution to unitholders (10,895) (10,895) At 30 June ,414 (23,752) 2,461 (159,954) 344,169 Units in Issue Hedging Reserve Foreign Currency Translation Reserve Accumulated Profit/(Losses) Total Equity US$ 000 US$ 000 US$ 000 US$ 000 US$ At 1 April ,273 (26,598) 161 (114,146) 369,690 Total comprehensive income for the quarter - (976) (4,980) (6,106) (12,062) Contribution by and distribution to unitholders: Distribution to unitholders (8,980) (8,980) At 30 June ,273 (27,574) (4,819) (129,232) 348,648 Note: (a) Pursuant to a private placement exercise conducted in June 2011, 56 million new units were allotted and issued on 23 June 2011 at S$0.35 per unit (6.4% discount to adjusted volume weighted average price). The total net proceeds from this equity issuance amounted to US$15.1 million (or S$18.7 million). Page 7 of 14

8 1(d)(i) Statements of Changes in Unitholders Funds (cont d) Note Units in Issue Hedging Reserve Accumulated Losses Total Equity US$ 000 US$ 000 US$ 000 US$ Trust At 1 April ,273 (23,773) (248,782) 237,718 Total comprehensive income for the quarter - 21 (6,925) (6,904) Contribution by and distribution to unitholders: Units issued pursuant to equity placement (a) 15, ,141 Distribution to unitholders - - (10,895) (10,895) At 30 June ,414 (23,752) (266,602) 235,060 Units in Issue Hedging Reserve Accumulated Losses Total Equity US$ 000 US$ 000 US$ 000 US$ Trust At 1 April ,273 (26,598) (194,501) 289,174 Total comprehensive income for the quarter - (976) (8,203) (9,179) Contribution by and distribution to unitholders: Distribution to unitholders - - (8,980) (8,980) At 30 June ,273 (27,574) (211,684) 271,015 Note: (a) Pursuant to a private placement exercise conducted in June 2011, 56 million new units were allotted and issued on 23 June 2011 at S$0.35 per unit (6.4% discount to adjusted volume weighted average price). The total net proceeds from this equity issuance amounted to US$15.1 million (or S$18.7 million). Page 8 of 14

9 1(d)(ii)(iii) Details of any changes in Units 2Q 2011 Units FY 2010 Units At the beginning of the period 598,665, ,665,077 Units issued during the period 56,000,000 - At the end of the period 654,665, ,665,077 1(d)(iv) Sales, Transfers, Disposal, Cancellation and/or use of Treasury Units Not applicable. 2. Whether the figures have been audited, or reviewed and in accordance with which auditing standard or practice The figures have been extracted from the Interim Financial Information which has been reviewed by the auditors in accordance with the Singapore Standard on Review Engagements 2410 Review of Interim Financial Information performed by the Independent Auditor of the Entity. 3. Where the figures have been audited, or reviewed, the auditors report (including any qualifications or emphasis of matter) The Auditors review report, modified with an emphasis of matter, dated 20 July 2011 on the interim financial report of FSL Trust and its subsidiaries for the quarter ended 30 June 2011 is enclosed in the Appendix. 4. Whether the same accounting policies and methods of computation as in the issuer s most recently audited financial statements have been applied FSL Trust has applied the same accounting policies and methods of computation in the preparation of the financial statements for the current reporting period compared with the audited financial statements for the year ended 31 December If there are any changes in the accounting policies and methods of computation, including any required by an accounting standard, what has changed, as well as the reasons for, and the effect of, the change There are no changes. 6. Earnings per Unit ( EPU ) and Distribution per Unit ( DPU ) for the financial period 2Q Q H H 2010 Basic and diluted earnings per unit is based on: Loss for the quarter/period (US$ 000) (491) (6,106) (2,486) (5,420) Weighted average number of issued units (basic and diluted) ( 000) 603, , , ,665 Basic and diluted earnings per unit based on weighted average number of units in issue (US Cents) (0.08) (1.02) (0.41) (0.91) Number of issued units at end of quarter/period ( 000) 654, , , ,665 Distribution per unit (US Cents) Page 9 of 14

10 7. Net Asset Value ( NAV ) per Unit based on units at the end of the period Note: (a) 30 Jun Dec 2010 Note Trust Trust Net asset value per unit (US$) (a) Net asset value per unit was calculated based on the applicable number of units issued as at the end of the respective period/year. 8. Review of Performance Consolidated Income Statements 2Q Q 2010 Inc/ (Dec) 1H H 2010 Inc/ (Dec) US$'000 US$'000 % US$'000 US$'000 % Revenue 28,700 28, ,552 52,960 (0.8) Depreciation expense on vessels (14,442) (15,066) (4.1) (28,738) (30,554) (5.9) Impairment loss on vessels - (7,865) N.M. - (7,865) N.M. Vessel operating and voyage expenses (4,267) (219) N.M. (8,410) (219) N.M. Management fees (867) (897) (3.3) (1,700) (1,876) (9.4) Trustee fees (41) (44) (6.8) (83) (89) (6.7) Other trust expenses (912) (3,861) (76.4) (1,647) (4,412) (62.7) Call on banker s guarantee (2,500) - N.M. (2,500) - N.M. Finance income (84.2) (69.2) Finance expenses (6,183) (6,817) (9.3) (12,009) (13,524) (11.2) Loss before income tax (489) (6,095) (92.0) (2,482) (5,407) (54.1) Income tax expense (2) (11) (81.8) (4) (13) (69.2) Loss for the quarter/period (491) (6,106) (92.0) (2,486) (5,420) (54.1) 2Q 2011 vs 2Q 2010 In June 2011, FSL Trust acquired two Long Range II product tankers from a whollyowned subsidiary of TORM A/S ( TORM ) and concurrently leased the vessels back to TORM. The acquisition of these vessels increases FSL Trust s portfolio from 23 vessels to 25 vessels. Revenue increased marginally by 0.6% (+US$0.2 million) to US$28.7 million in 2Q 2011 compared to 2Q Included in 2Q 2010 revenue was a US$6.0 million security deposit received by FSL Trust arising from the re-delivery of FSL Hamburg and FSL Singapore in 2Q Excluding this amount, 2Q 2011 s revenue would have risen by 27.4% as compared to 2Q The net increase was attributed to the freight income earned by the vessels in the spot market post re-deliveries and additional lease revenue from the newly acquired vessels leased to TORM. Excluding the vessel operating and voyage expenses of US$4.3 million relating to the product tankers trading in the spot market and provision for call on banker s guarantee of US$2.5 million, total operating expenditure fell 41.4% (-US$11.5 million) to US$16.3 million. The higher expenditure in 2Q 2010 was mainly due to (i) impairment loss of US$7.9 million, net vessel related expenses (non-recurring) of US$1.1 million and legal fees relating to the handling of the re-delivery and arrest of FSL Hamburg and FSL Singapore, and (ii) professional fees incurred for the aborted senior note offering. Page 10 of 14

11 8. Review of Performance (cont d) On the basis of the judgment passed by the court in PRC in favour of Daxin Petroleum Pte. Ltd. ( Daxin ) in its bunker claims case against Rovina Shipping Company Limited ( Rovina, an affiliate company of Daxin), Daxin will now be able to call upon the banker s guarantee posted by the Trustee-Manager as security for the release of Nika I (now renamed FSL Hamburg ). As the PRC judgment was in relation to an event existing as at 30 June 2011, a provision for this call on the banker s guarantee amounting to US$2.5 million was made for 2Q Taking into consideration the provision for call on banker s guarantee of US$2.5 million, FSL Trust reported a US$0.5 million net loss during the current quarter under review. Trading performance of two product tankers 2Q H 2011 US$ million US$ million Freight income Voyage expenses (3.037) (6.018) Time charter equivalent revenue Less: Crew cost, vessel maintenance and others (1.306) (2.544) Bareboat charter equivalent revenue Subsequent to the re-deliveries in 2Q 2010, FSL Hamburg and FSL Singapore were deployed in the product tanker spot market. While expenditure is recognised on an accrual basis, freight income is recognised only upon discharge of the freight. In 2Q 2011, out of the US$7.6 million recognised, US$1.6 million was primarily attributed to freight carried in 1Q On a cumulative basis for 1H 2011, FSL Hamburg and FSL Singapore generated a time-charter equivalent and bareboat charter equivalent revenue of US$4.6 million and US$2.1 million, respectively, on the back of freight income of US$10.6 million. Distribution Statements Note 2Q Q H H 2010 US$ 000 US$ 000 US$ 000 US$ 000 Loss for the quarter/period (491) (6,106) (2,486) (5,420) Add: Non-cash adjustments (a) 13,977 23,362 27,511 39,005 Net cash generated from operations 13,486 17,256 25,025 33,585 Less: Repayment of secured bank loans (8,000) (8,000) (16,000) (16,000) Income available for distribution 5,486 9,256 9,025 17,585 Add: Utilisation of cash retained from previous periods 246-2, Less: Cash retained in the current period - (3,568) - (3,568) Net distributable amount 5,732 5,688 11,419 14,668 Amount available for distribution 5,732 5,688 11,419 14,668 Comprising:(i) Tax-exempt distribution 5,711 5,553 11,370 14,509 (ii) Tax-exempt (one-tier) distribution Amount to be distributed (b) 5,732 5,688 11,419 14,668 Units at the end of the period ( 000) 654, , , ,665 Distribution per unit (US Cents) (b) Notes: (a) Non-cash adjustments include depreciation expenses, translation exchange differences and amortisation of certain debt upfront fees and initial direct costs. (b) This comprises a stub distribution of US0.87 and a final distribution of US0.08. Please see note (c) on page 3 for the details. Page 11 of 14

12 8. Review of Performance (cont d) For 2Q 2011, FSL Trust generated net cash from operations of US$13.5 million, of which 43% or US$5.7 million will be distributed to unitholders. This equates to a distribution per unit ( DPU ) of US0.95 for the current quarter under review (comprising a stub distribution of US0.87 and a final distribution of US0.08 ). The residual cash was applied primarily towards quarterly loan repayments totalling US$8.0 million. The Trustee-Manager is not entitled to any incentive fees as the Net Distributable Amount per unit ( DAU ) of US0.95 did not meet the incentive fee threshold DAU of US2.45. Distribution Reinvestment Scheme For the quarter ended 30 June 2011, the Board has determined that the Distribution Reinvestment Scheme will not apply to the distribution declared for this quarter. 9. Variance from Prospect Statement Not applicable. 10. Outlook and Prospects The addition of two product tankers on lease to TORM further increases the stable and predictable cash flow generated by the Trust s vessels on long-term leases. The Trustee-Manager s immediate focus is to tie-up the re-financing of the credit facility and at the same time continue to seek cash-flow accretive growth opportunities. With regard to FSL Hamburg and FSL Singapore, indications in early 3Q 2011 for the relevant spot rates showed a softening of the freight earnings. Hence, earnings from these two product tankers may be dampened. The Trustee-Manager will continue to seek longer term employment options for the two tankers. 11. Subsequent events Judgment passed by court in Japan As announced on 18 July 2011, the Japanese court has ruled in favour of the Trust and has set aside the arrest of Verona I (now renamed FSL Singapore ) by Daxin. If there is no appeal, the Trustee-Manager expects the security deposit of approximately US$1.6 million to be released by the Japanese court in due course. The release of the security deposit will not have any financial impact to the net income of the. Judgment passed by court in PRC As announced on 18 July 2011, the Chinese court has ruled in favour of Daxin in its bunker claims case against Rovina. The Chinese court had earlier allowed the arrest of Nika I because of alleged bunker claims. In order to secure the release of Nika I, the Trustee-Manager had posted a banker s guarantee in favour of Daxin as security. On the basis of the judgment passed by the court in PRC in favour of Daxin, Daxin will now be able to call upon this banker s guarantee. As the PRC judgment was in relation to an event existing as at 30 June 2011, a provision for this call on the banker s guarantee amounting to US$2.5 million was made for 2Q Page 12 of 14

13 12. Distribution (a) Current financial period Any distributions declared for the : Yes current financial period Amount for period from 1 April 2011 to : US$5,208, June 2011 Amount for period from 23 June 2011 to : US$523, June 2011 Distribution Type : Cash, Tax-exempt Distribution Stub Distribution Rate for period from 1 : US0.87 cents per unit April 2011 to 22 June 2011 Distribution Rate for period from 23 : US0.08 cents per unit June 2011 to 30 June 2011 Par Value of units : Not applicable Tax Rate : Distributions received by either Singapore tax resident unitholders or non-singapore tax resident unitholders are exempt from Singapore income tax and also not subject to Singapore withholding tax. The unitholders are not entitled to tax credits of any taxes paid by the Trustee-Manager of FSL Trust. (b) Corresponding Period of the Immediate Preceding Financial Period Any distributions declared for the : Yes previous corresponding period Amount : US$5,687,318 Distribution Period : 1 April 2010 to 30 June 2010 Distribution Type : Cash, Tax-exempt Distribution Distribution Rate : US0.95 cents per unit Par Value of units : Not applicable Tax Rate : Distributions received by either Singapore tax resident unitholders or non-singapore tax resident unitholders are exempt from Singapore income tax and also not subject to Singapore withholding tax. The unitholders are not entitled to tax credits of any taxes paid by the Trustee-Manager of FSL Trust. (c) Date payable - Distribution for period from 1 April 2011 to 22 June Distribution for period from 23 June 2011 to 30 June 2011 : 21 July 2011 : 26 August 2011 Page 13 of 14

14 (d) Books closure date : The Transfer Books and Register of Unitholders of FSL Trust will be closed at 5.00 p.m. on 28 July 2011 for the purposes of determining each unitholder s entitlement to the Distribution of US0.08 cents. Unitholders whose securities accounts with The Central Depository (Pte) Limited ( CDP ) are credited with units at 5.00 p.m. on 28 July 2011 will be entitled to the Distribution to be paid on 26 August (e) Currency election procedures : Unitholders whose units are held directly through CDP will receive their distribution in the Singapore dollar equivalent of the US0.08 cents declared. Unitholders who wish to elect to receive the distribution in US dollars can do so by submitting a Currency Election Notice by 5.00 p.m. on 10 August If no distribution has been declared/recommended, a statement to that effect Not applicable. 14. Confirmation by the Board The Board of FSL Trust Management Pte. Ltd. as Trustee-Manager of First Ship Lease Trust, has confirmed that, to the best of their knowledge, nothing has come to their attention which may render the interim financial results of the for the quarter ended 30 June 2011 to be false or misleading in any material aspect. This announcement may contain forward-looking statements that involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, competition from other companies, changes in operating expenses, trust expenses and governmental and public policy changes and the continued availability of financing in the amounts and the terms necessary to support future business. Investors are cautioned not to place undue reliance on these forwardlooking statements, which are based on current view of management on future events. BY ORDER OF THE BOARD FSL TRUST MANAGEMENT PTE. LTD. (COMPANY REGISTRATION NO R) AS TRUSTEE-MANAGER OF Rebecca Cheng Pei Jiuan Company Secretary 20 July 2011 Page 14 of 14

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